Superannuation administration manual: Special bulletin 2019-001

2.1 Canada Pension Plan and Quebec Pension Plan

For the 2019 taxation year, the contribution rate for the CPP is set at 5.10% of contributory earnings. The contribution rate for the QPP remains at 5.40% of contributory earnings.

The 2019 taxation year changes related to CPP and QPP are:

• Yearly maximum CPP and QPP pensionable earnings (YMPE): $57,400.00
• Yearly CPP and QPP basic exemption: $3,500.00
• Yearly maximum CPP and QPP contributory earnings: $53,900.00
• Yearly maximum CPP contributions: $2,748.90
• Yearly maximum QPP contributions: $2,910.60
• Five-year average maximum pensionable earnings (AMPE) for 2019 taxation year: $55,420.00

The AMPE is calculated based on the average of the yearly maximum pensionable earnings (YMPE) for the current year plus the four previous years. The annual CPP and QPP reduction now referred to as bridge benefit, payable under the PSSA for individuals who retire in 2019 will be based on the lesser of the five-year average salary, or the AMPE at the earlier of the termination date, OR the date the employee reaches age 65, OR the date the employee becomes entitled to receive CPP and QPP disability benefits.

2.2 Public Service Pension Fund employee contribution rate

All new employees who become public service pension plan members on or after January 1, 2013 must contribute at a different rate than employees who became public service pension plan members prior to January 1, 2013.

Effective January 1, 2019, the employee contribution rates are:

• For plan members who were participating in the plan prior to 2013
  • 9.56% on pensionable earnings up to the YMPE ($57,400.00)
  • 11.78% on pensionable earnings in excess of the YMPE ($57,400.00).
• For new plan members on or after January 1, 2013
  • 8.68% on pensionable earnings up to the YMPE ($57,400.00)
  • 10.18% on pensionable earnings in excess of the YMPE ($57,400.00).

2.3 Salary threshold under the Public Service Superannuation Act

For 2019, employees whose annual salary rate is in excess of $169,300.00 must contribute to the PSPF in respect of salaries below this limit and to the RCA account in respect of those salaries above the limit.

2.4 Retirement Compensation Arrangement employee contribution rate

For 2019, employees whose annual salary rate is in excess of $169,300.00 must contribute to the RCA in respect of the portion above limit.
Since salaries that exceed the threshold under the PSSA are also in excess of the YMPE, the contributions will be deducted at the same rate as those contributions payable under the PSSA.

Effective January 1, 2019, the employee contribution rates are:

• For plan members who were participating in the plan prior to 2013
  • 11.78% on pensionable earnings in excess of the salary threshold ($169,300.00).
• For new plan members on or after January 1, 2013
  • 10.18% on pensionable earnings in excess of the salary threshold ($169,300.00).

2.5 Employer contribution rate

The Public Service Superannuation Act (PSSA) was amended effective January 1, 2013 to allow the contribution rates for all active PSSA members to continue to gradually increase over time to attain an employer to employee cost-sharing ratio of 50:50. This statute enabled the following pension contribution rates:

2.6 Pension increase under the Supplementary Retirement Benefits provision of the Public Service Superannuation Act

Part III of the PSSA provides for annual pension increases based on the cost of living index, for all pensions payable to former public servants or their survivors.
The pension increase authorized under Part III of the PSSA is 2.2% effective January 1, 2019 - 0.6% increase from prior year 2018.

2.7 Pension adjustment information